EAF - Earnings call transcript Q4 2024 | GrafTech International Ltd.

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Operator

Good morning, ladies and gentlemen and welcome to the GrafTech Fourth Quarter 2024 Earnings Conference Call and Webcast. [Operator Instructions] This call is being recorded on Friday, February 7, 2025. I would now like to turn the conference over to Mr. Mike Dillon. Sir, please go ahead.

Michael Dillon

Thank you. to fourth welcome call. XXXX and morning, GrafTech quarter International's earnings Good Financial with Flanagan, Officer; Chief Chief Tim today and Executive O'Donnell, Along are Halford, Chief me Officer; Jeremy Rory Officer. Operating comments. will with Tim begin opening then matters. will and discuss environment, commercial Jeremy sales the operational safety, our and other review will and financial outlook. results on comments with our quarterly will details, Tim Rory close

will then open We the call to questions.

our slide. next Turning to

and may strategies. the and include some cause statements subject a of matters things, forward-looking materially discussed differ performance, this are other reminder, those results actual on trends statements forward-looking uncertainties. based statements indicated call These regarding, are could and current by among As shown in are to from Factors expectations that risks to here.

financial relevant include non-GAAP these We discuss measures, non-GAAP will the certain slides reconciliations. and also

find Tim. these call of replay of website. I'll now call the www.graftech.com. Investor turn available our in the at website slides on Relations the our to You section A will be also can over

Timothy Flanagan

and joining Thanks, Good GrafTech's you call. earnings morning, Mike. quarter fourth thank for

call XXXX the beyond. quarter XXXX, an begin commercial overview the and we performance number highlighting operational areas. the a graphite Throughout downturn cyclical our our by taking in we'll key faced. this we of to actions key and to provide fourth discuss key share like discussed I'd in were for updates XXXX results, response But electrode outlook of industry and our morning, During

results. with all impressive on delivered have We fronts

introduction flat grew continuing share production accelerate to sales market despite global proud dynamics, of our increase in certain reinvigorate would the level market to level electrode of our competitive organization. customer-first what customer of exports share progress including our product standards executed we volume our Let in levels. path up teams priority of me a XXX-millimeter and XXXX, XX% and XXX-millimeter focus was briefly be XXXX. electrode touch an demand The to significant further and areas. offering. investing well us we've the our of returning noted included named a Among one customer on China our growth our to our was challenging a to in our the launch value by including key towards ongoing in engagement This This I'm increase of top being this occurred initiatives during few has been recovery. countries, historical allowing of our graphite to flat steel others, performed Since by CEO, our from across qualifications year-over-year. China. multiyear and India highest proposition, consistently in outside path Despite

As number we of qualification into this that the an require important complete years electrodes, in ahead. a we on XXXX, trials XXX-millimeter making furnaces platform will additional growth head

a in sets XX% recovers. per low-teen point market more or reduction for cash compared for year-over-year per Instead, ton time, COGS percentage $X,XXX metric XXXX. projected ton, result a as the up delivered we in this the to our would and rationalization ago our in production St. front, reduction reduction expenses, a significant facilities, On announced footprint in a at the our initiatives. plan. This included our and at Mary's capacity other year remaining facility, further and cost overhead the cost optimization we time, among metric we than decline when which favorably idling structure At of this our XXXX a us

also initial working delivered over Our expectations. our manage initiatives capital levels to our

XXXX. capital our reductions reduced million by in of which working we the working year, $XX on the For million, of top levels is $XXX capital

opportunity we our on Lastly, and our strengthen position capitalized to financial liquidity improve an foundation.

transaction. quarter, the on we previously our financing During closed fourth announced

we we we of debt maturities summarize, XXXX. plan laid our ended with substantially of to $XXX we of and completion successful Further, liquidity. of December million the extended With XXXX executed. out To transaction, a all this

those by the performance moment. of All express GrafTech. reflect backdrop, like in our preserve financial further a entire be by managing satisfied with a proud discuss we XXXX. was of flexibility I'll recovery absolute a To our capitalize we to work actions on But the our commitment year in and in clear, of And achievement across hard significant team challenging needed, are would means, the for the incredibly are of things I'm on a This achievements and our not. everybody remarkable future in within appreciation these at I XXXX and to my demonstrated order efforts market. the against focus to no our control means globe. are

we're market the the global for year. the As shoots seeing XXXX, we green in is a generally modest projecting steel demand as some enter in broader industry increase

However, a remains. uncertainty of significant geopolitical amount

particularly for tariffs We the our retaliatory chain. it to as might Mexico potential relates how are tariffs, on and North supply focused including impact American this

remains we a a situation, While fluid outcomes. of this are potential considering variety tariff

expect scenarios share current any be is broadly, electrodes in are commercial minimize momentum demand to other and to regions to into evaluating or act to our continue impact, More capitalize grow to volume proactive and that XXXX. are our movements for key outlook chain. in response various the our sales we supply of factor will in the market Despite graphite whether our in all near-term. flat considerations this, to on potential increase We prepared thinking, remain geopolitical order inventory our adjustments our actively as relatively our it through we to these our

business good it's to grow dynamics Furnaces and pricing level on with it a suppliers, leads near-term more not for industry. annual are steel million tons growing growing graphite to good the for steel a an industry high-quality Therefore, Electric However, not most healthy graphite reliable A is is steel and it. a that production. needs along this Arc produced of of steel fact. in of regions. EAF the via supply simple graphite basis. our more invest healthy indispensable It's Globally, electrode electrodes pricing XXX and current The broadly, All in persist challenging than and sustainable. not can with electrode

We will cost proactively opportunities structure. improve continually our pursue to

first cut we such the not it's taken price for cannot the our way optimize by to of the recently management value additional opportunities customers value an where we important there's must we are of improve. We pricing. on capture lightly, will these away opportunity where prices day, increase book regions At expand XX% compensated not must XXXX. that end, is our our invest increase To volume working We to selling restoring as volume our that to we of provide business. our growth. but will our that This compared ability especially our path are but to our also in Actions to necessary margins by normalized are to informed our to the average intention our our is our business competitors. and, geographic on order on recognize where step some yet actively when higher low end proposition. customers for continue to pricing to initiatives, that the therefore, support committed shifting mix includes profitability customers, or This a walking do levels not for unacceptably capital to

and to preeminent industry's technical creating the all are which coke, committed our our support constituents. high-quality employees, reflects of remaining turn We of petroleum all performance. of more color to over operational customers shareholders, needs our meeting of With that, and electrodes, commercial supplier and customers, graphite our needle our our long-term our me let the focus to by it relentlessly value leading-edge our provide Jeremy on on for communities

Jeremy Halford

morning, Tim, and good Thank everyone. you,

a top manufacturing update the with industry. safety, comments always, was to on the us GrafTech. I'll incident place prior recordable at and of comparable value core an the XXXX start with my broader ended to in As year is that a tier rate which continues We

However, put not was of the safety XXXX year. our in it bluntly, to the particularly acceptable, fourth in quarter performance

capable to Our industry, in doing operations none we're is team better. of the second and

send expectation our our not employees home of goal we zero of every of ultimate achieve every is safely to the end we will day, at satisfied until Our and injuries. be one

basis, steel was fourth commercial was outside a turn next the flat to approximately fourth production the now in me China also utilization which consecutive relatively quarter in million year, China the of compared On steel XXX was the year. remaining flat XXXX, to prior a quarter year the with mid- Let discuss of the On global global tons consistently second to high range to environment. XXXX. to of of production rates outside the basis, for slide full XX%

let's America, Looking production steel published a World This at X% modest decline below X% well the in in for North that slide in down what steel a reflecting levels that U.S., it using year-over-year in region. our Conversely, some X% to was statistics an regions on of been historical Association, basis. next results. utilization our remains key although XXXX output relatively stable has the the the turn a region. production Steel With otherwise for on details background, by included EU for year, increased reduction and for more recently commercial the steel

Tim quarter, of LTA realized which per and our by outlook of X,XXX XX,XXX that to Our in our third fourth sold was business non-LTA quarter of challenging and the Net above the for the the metric lower was quarter. Shipments production previously was decline capacity non-LTA offset stated utilization fourth a approximately in weighted fourth the X%, volume the dynamics metric XXXX for which pricing, LTAs year-over-year our sales approximately the quarter XX,XXX in the XX% mix the reflecting along XX% fourth weighted of up quarter decreased approximately of tons, higher XX%. was metric tons metric of pricing resulted this spoke sales from sequential per volume at as X% decline fourth XXXX of with XX,XXX average price of $X,XXX $X,XXX the sales and Sales in tons approximately included approximately compared the represented our a price a in from on average the XXXX average shift for fourth of rate at price sales tons volume year-over-year volume. realized non-LTA quarter metric a weighted in under ton quarter a metric to ton. Expanding quarter, to.

XXXX. the concluded to window as we recently well XXXX, new by a regarding for dialogue we of our with needs their were Turning many customers encouraged existing in discussions customer negotiation we commitments. where at key of ones which Overall, as our and volume book, last we pleased year. level were XX% is of committed already with our resulting To have where ahead volume date, point anticipated of we XXXX this the order in over engaged

to double-digit the in Reflecting XXXX. For point the full we in which anticipate sales volume year Tim the a comes we actions of for targeted on opportunity expect increase year, achieved XXXX, an XX% shift percentage mix regions geographic European top in low increase full our our volume growth will that volume primarily XXXX regions. to discussed sales the there's higher in actively pricing, be and business capture we of U.S. to where concentrated the our

muted the technical our also to our service this proposition. capabilities the our include success engagement of These supported customer which reflects by our customer team. environment, of an strategy expansion architect demand It furnace aimed our investments further is investments in share. reflects productivity at our market value customer Given related regaining technical system, world-class

Additionally, we the offerings, have with our product our XXX-millimeter most of introduction product. expanded notably

years that offer niche need. excited With currently market launch, to other and significantly are successful to our is outpace in electrode this come. for a high-quality the meet market, XXX-millimeter overall of products expected supersized demand While growth we to electrodes to

strategic growth Lastly, in during our with entered sales multiyear into customers, new certain contribute electrode XXXX, XXXX. volume to will we which agreements

achieve of relatively products Although position confidence these these book, of unique in order into our needle years multiyear being our their strengthening and of integrated for the services the reflect to Ultimately, have course, of relationship percentage about mutual all for our value overall term small and we, of long to customer our customers initiatives come. And recognition are their our coke. a success vertically partnership. agreements long-term

Let turn financial cover me the it now details. our over rest of to to Rory

Rory O'Donnell

you, everyone. Jeremy, good and morning, Thank

a the EBITDA negative we $XX had XXXX, of adjusted net $XX of loss million Adjusted $X The the of of quarter in pricing weighted per negative was on our volumes, in offset driven quarter in basis. business to was improvement XXXX. as compared costs was This of and towards of the metric impact partially XX% by cash lower fourth the $X.XX million fourth the or share. million ton Jeremy a a fourth year-over-year in the shift referenced. EBITDA quarter For average reduction mix non-LTA by per

fulfilled we legacy the of almost have previously As indicated, have LTA the contracts been XXXX. as entirely of end

LTA of be the mix As such, volumes. significantly future results impacted will versus by non-LTA not

represents which favorability, expand over previously Let the on me expectations. our an stated delivery cost compared to

a posted COGS to our the cash brought materials $X,XXX our metric in metric under for COGS our customers' teams guidance shown of in XX% our reduction against the our of needs most for decline. $X,XXX in quality. of and were the As exceeding reconciliation This a opportunities efforts quarter to executing cost or per website, cost just year our our reduction XXXX. performance without our year-over-year, call fourth compromising impressive recent product This ton per meet XX% cash on reflects full provided earnings our ability ton identifying

Moving ahead, down expectation expected approximately continue ton has percentage trend but metric will cost is execution coming to continue further reduction per incredible The XXXX, that per reflected magnitude cost time. in components continue the programs, build to our $X,XXX toward the team's of savings trend on of over moderate we periods long-term anticipate decline, of compared of initiatives various XXXX, we and in cash cost to the our over reduction variable to fixed will XX% which our our costs the will across recent business. to ton. Specific metric to our

In volume reflecting expected our leverage, cost the in cost levels. production addition, structure improved fixed benefit from our will increase

in percentage cash result, mid-single-digit $X,XXX per into metric XXXX. in COGS a decline we ton our translate cash on a a approximately basis point per which of ton in anticipate would metric year full COGS As XXXX,

Turning our cash to flow.

reflecting cash fourth negative million. negative XXXX in operating flow $XX used This and of was free $XX XXXX a The to benefit quarter capital both full adjusted activities working For by to million. view driven our XXXX, net million of a cash cash $XX the million with to XXXX, inventory, year-over-year year reduction cash of inventory in flow a adjusted brought being change compared free was approximately benefit capital as of million align reflected to a the working $XX $XX efforts source favorability million from in in $XXX compared in with demand. years XXXX our levels in

we enter we will capital our management continue XXXX, working As build to on initiatives.

capital favorable in lesser anticipate and be of years. electrodes. working X capital will while For to we maintaining although These year, performance of will the adequate safety combination extent flow working a cost quantity XXXX, than cash through full the reductions pins be in improvements production benefits last to realized and a stock our

capital recovery area our this on positioned focus Our and by well to cash on a decisions capital and levels while continue demand. evolving balanced preserve meet to be perspective in working customers from remaining informed actions will a a the reducing in working to of needs capitalize

the ended Turning quarter, end announced a the November. of our driven successful in transactions representing $XXX increase year with total capital million, completion from to slide. We were third million of the in the $XXX next the liquidity that liquidity our of by

availability revolving $XXX loan. of million draw under of and $XXX consisted of under credit availability liquidity our year-end term $XXX $XXX million delayed million Our million cash, our of new facility

facility, XXXX. credit XXXX, had matures as outstanding we of of $XXX borrowings no the our revolving in As to million end it which of relates November

considers less on that financial borrowing to the million revolver year. availability based performance, which springing a outstanding end credit, the letters recent approximately our However, currently the as of $X of $XXX was financial limited remains under of million, covenant

to profile. Turning maturity our debt

new drawn, of term which December loan, million matures $XXX Our in of XXXX. currently delayed is draw

in participation exchange to the million December extension of which it maturity over for in original offer, a provided X-year had of recently As we $XXX XX% XXXX. to our date notes, relates completed the

have December debt a transactions, until no As of our XXXX. these of maturities of substantially result we funded

on to turn some over now our for me the comments outlook. call Tim Let back final

Timothy Flanagan

plan with adding relentless set a meeting We're and capabilities on engaging We're needs. Rory. proposition. offerings. Thanks, our value with summarize, to their a customers our continue and product we customer investing focus our deliver. We're we've to out To in technical

improve capital expenditure particularly result, the a market areas. safety compromising As our demand. position aggressively on and liquidity we're our capacity, U.S. our costs customers managing to performance. share, capitalized opportunity our and we're making investments foundation. growing environmental balance operating working and without cutting in capital And and We're our key while financial targeted proactively our quality, or production managing levels in key with we've We're an to strengthen reduced supply We've

absolute these cyclical opportunities. has growth in our To industry on participate downturn and efforts cautious our sustainable long-term remains industry focus navigate that the on long-term our while near-term many about on tailwinds our and preserving our controllable optimism the of intact. industry long-term reflect controlling capitalize in All ability point, to an that we last industry while remain we to trends,

analyst all modest for regions, earlier, Africa. noted projected projections, expected EU, nearly Middle growth on the XXXX. steel I includes our the is As This in demand East growth key Americas, global the industry based of and in

rebounding find be growth to market than global the the initially we expected, Although more steel is encouraging. projected slowly many

steelmaking efforts More approach over a the by published production latest importantly, outside of World the drive Association, continue market we method statistics long XX% in of Steel decarbonization nearly production to of on steel the every will expect for an region. China from transition in in XX% increase accounted term. global XXXX with to growth the the share EAF Based in steelmaking XXXX,

they producers steel from certain a recently their policies are such plans away upcoming decarbonization companies delay decarbonization long-term their announced transition and not While backing evaluate as developments, market government in goals. have

for we that have a electrodes produce present vertical tailwind also the macro times we these Both the Arc our demand steel of term, production Electric As substantial needle use of a for such, graphite growth drive over Further, petroleum in spoken will anticipated for electrodes. past. graphite given business increase integration. our their themes turn share we in number material will will demand remain long key continue the raw Furnaces which the key confident that to total incremental coke, to of to

growth consistent support market. the in coke the significant of chains early of stages. in of vehicles the OEMs electric raw establishment to storage Western that a manufacturing energy Our potential from remains The for through market needle the belief is material about and chain establishment supply the with to applications supply those for

build As continued to such, technical we participants. time, to have and those our during this market capabilities key demonstrate

GrafTech Given maximize unique be and we strategic on is the that a to confident the and long-term those steps capitalize to steel this our to electrodes, of opportunities. on results with front coming our the benefit Both we're pivotal executing a we positioned and the Yet expertise us needle a have institutional assets, of taking rebounds and we well positioned time years. advantages still market will as for Further, tailwinds. we that GrafTech coke challenge. continue many partner of believe in out extensive and value us. it. with to challenges In We the of we space. attractive set production, around well growth efforts the in an beyond capitalize knowledge long-term on GrafTech Confident set to are to we within capabilities. are possess up graphite is positioned distinct closing, ways allow capabilities we're in focus in to competitive global the industry Overall, plan, this are assets against

generating concludes For for are now in confident reasons, for remarks. our We'll questions. we stockholders. the its great open call these prepared This value GrafTech

Operator

[Operator Your line Bank comes Landa first from of of America. Instructions] Abe question the from

Abraham Landa

adjustments much $XX million COGS full the question. by the some in for $XX for COGS? I first that that it that know adjustment, impacted that market fourth think X I benefit the to was XXXX just months. LCM your How lower quarter? or cash in what just benefit or cost I That will you start quarter; made inventory think a housekeeping 'XX. off, And fourth Maybe additional million of or Just the for was year favorably

Rory O'Donnell

year realize as The you about of million Rory. quarter for range about to is million. fourth This XXXX benefit is we'll that the the probably full well? and $XX in sorry, I'm $XX asked

Abraham Landa

just million $X-odd do million math. It's the Well, $X to I guess like is could sense. my I

you that kind XXXX valuation how and year, COGS cash So, that number? the made then throughout does adjustments much benefit of the the

Rory O'Donnell

flow through XXXX. you gave as number. a XXXX I to $XX the was cash COGS benefit number million That will

Abraham Landa

And of a from on then going the discussion Obviously, imports on Mexico. XX% tariffs. perfect. sure on I'm That's get to lot Great. tariffs you're number questions a of

of You mentioned kind some adjustments. other movements potential inventory and

to Does tariffs want Mexican what that be redirect to on like the production assets' doesn't, just if year, other flesh U.S. commitments Just you European little. happen into kind And or for those and of take maybe that regions mean there? volumes added at commitments have out your your then the XX% you does would -- account? to that a it would would redirected

Rory O'Donnell

three, dynamic One, no really is trying that to get to operating sure Yes, a prepared. most the will focused from as conduct to thanks. what's we've going deliver in this into day, kind place; we've calls, And the about business, Mary, at of between different, cover tariffs remains fluid or end answer will look we angles all, chain we important I sure. our think of how be? probably and Pamplona to this end And off they question At operations sorry, Mary's production trying St. every to integrated a of previous I about customers. not talked and main fairly long be make still as conceivable really a much as surprised And two, facilities they and on been these to put for how couple of on if we're ultimately are Kalle St. And sites questions. to is, And the an think we're last? situation. well our that Monterrey, this supply

to we still deliver to in impact. a flexibility we to end the just scenario extent think to we that pretty this these it that At there move to can we're and about act that things, a on but we the to customers. right? that time forward, fruition. have supply we impact, end the markets minimize right? to as day, production continue completely got large of a point the conceive place prepared move at the chain come every adjust for that continue various plan extent the allow day, we've these think can chain. to be You can't continue are in avoid will put of to into adjust, in we We're with supply around company we'll the amongst a At our would us And global and global as sites to the So, an minimize

So, that sorts this is of to one of regular intricacies deal on basis. just we a have many with

Abraham Landa

Do of to of you number have a just around Mexican products number imported U.S., a way a revenues the it? XXXX for us put to

Rory O'Donnell

Yes. about stock Mexico, XX,XXX Monterrey as That a production. facility between has split of XX,XXX, tons capacity for is production. pin

past, in to again, built going a As pins up talked serve the market. pin in supply extent we've that's of stock now fairly the it's that the St. to produce Mary's we sufficient that U.S. But still sitting in facility. we've

manufacturing But about of So, again, into we we the Monterrey. of would come if we of our U.S. flexibility overlapping volume extent that that have with plants otherwise all production into Not think tons produce we about But volume Europe, of move out certainly, XX,XXX the the the goes to that to network the U.S. in some need. capabilities

the You asked previously about committed. XX%

honor expected. committed. are and we on and that, We deliver volume those with to globe tons the customers that, and as agreed will We've for pricing customers we will around

Abraham Landa

is kind to there cash it pass your that intentions a final draw minimum Maybe of what want loan? one one And along. maintain? on are transaction. that to on I maybe you that delayed Congratulations before Then level term just

Rory O'Donnell

Sure.

to of may XX the delayed million draw part term think recall the $XXX requires within you the that final months of transaction. loan, draw I So, us it

would on plans view based of it or draw XXXX be no of have that around So to June XXXX. our July now, business. in the Right we

component a not is that liquidity. our So of

we over cash I and had go as well, operating balances, XX we tell past the the we a months. well that historical or responsibly, below think But could will that you haven't that. levels year on As really safely operating put far minimum peg that we've

mark. $XX comfortably number pretty think below you million want to operate If we it, put the to could a I

Operator

Your comes JPMorgan. the next from Bennett of question line from Moore

Bennett Moore

your and XX% what customer wondering on you're I'm has peers price compare targeted been how thus might in the feedback hike far from what to markets? key this seeing the other

Timothy Flanagan

it for sounded price XX% a that. And you Bennett, Yes, hike. like thanks XX%, said it's

Bennett Moore

Yes. XX%...

Timothy Flanagan

maybe to in and that that sustainable continue alongside and before customer And around will about just there, in ourselves that's No, our would need taking market do of right? of years performance sustainable, in like our for not and has to rationale. We'll of, customers. I if feedback second. now things. this we let's I But this grow been working is return do put they're our been investment is aren't the what but producers done on in day, on challenged certainly the cost our levels of state. step care to the have to we're business get views, today We've again, further on sheet. many a those capital, respects appreciate to a profitable our managing balance seeing things. those kind almost promote for X And focused to the This that to for we continue question, pricing end to a as we many that our the first take liquidity, We've context all talk at focused

spot So QX pricing terms about was $X,XXX in pricing. of

if So, our consumption XX% electrode XX-K disclosed you $XXX per put produced. kilograms that's ton a of electrode. X.X it's We increase on of ton that $X,XXX, an steel of for in

a $XXX $XXX of $X.XX X.X%. steel that's than than more ton is for $X.XX over a less or kilogram that is selling on $X.XX X.X%. So,

the is for investment electrode. small their this perspective, place suppliers an in keep as of customer a something to from a So, indispensable health that's as

decision $XX, services. going customer if than value the technical partner to deliver steps, solutions. We solely and a customers X.X% overall think because to we it's based price technical to deliver these on those are certainly take there steps we're So, with based customers that need want focused we're and will deliver electrode buy to term. we it's we price our on of taking customer. alone. whether that long these Ultimately, or There margin We us out on for they're their make more just an

should certainly there there So are us those for. will customers work out and be things, think compensated I think we engage forward. that with And we we'll

be will hard So, and particular, for a with to supply of operating GrafTech customers be push all we customers reactions not get from I that their recognizing to sound where they a from, and along they're think will chain, is go understand that a requires to from need the kind piece in they to coming recognize profitability XX%, of us some standpoint. us. early in But

a deliver in So, we'll and see. on to the scheme relative push of it's again, grand But relatively to things it. small us. basis We'll continue a ask

Bennett Moore

assuming when then needle we pricing results? the these on could you're market, also, see hikes stick, give through if coke context could too. latest And you the flow seeing to them in any And start price

Timothy Flanagan

the prices. I'll coke I'll and Sure. first take to let the talk Jeremy part, needle

for step to contracting the right, of on So about we purchasers talk buy said volume just process, to U.S. we buckets, annual back a for XX% big tend second in contracts. If committed XXXX. remember of is and our about regions kind think

are at would second time. or be of to to the relatively half So, what is semiannually. of tend that's regions there's to needs. of this extent percentage that U.S. incremental little deliver very But the not those volume buying be there in that more world small tend in to deliveries committed uncommitted, a quarterly point otherwise the we'd Other expect

into be and this beyond for here will the in and So, we're negotiations second deliveries. entering first those take effect what quarter will quarter really

quarter. and move our forward. we see we've the in deliveries time negotiations when went second that will the as quarter So, as that fourth here we first committed remain the Everything in XX% into the you'd into it committed priced as

Jeremy Halford

to question your pricing type for largely coke per to $X,XXX unchanged data. on the really, We're super it's Yes. as needle $X,XXX seeing import/export metric we still And study relative ton. premium the in then coke, range

But so, And remain have that the the where first as needle coke a with the view future. progress for we saw flat relatively quarters a the shortage still year. X on long-term for of anticipates being, things time we into we

Operator

the line RBC Viswanathan Arun comes Markets. Your from question of Capital next from

Arun Viswanathan

appreciate all the years guys in as the few Look, hard as for a now. it's operations. going definitely well work challenging through you period been commercial a side I for

the you so appreciate on So, as And also very I But see is guess there, I well justification. the definitely share the look I you that. curious guess I guess price it side. probably, explained increase I'm forward, I

recovery. appreciate Where that is kind in And the did I as how of share? value? on you you regain? forward, regain delivering guess kind you share service Maybe have are items. process what's some how of And on it, kind some you of customers? journey? And who look some can in that don't said, you you are just customers you share those So, provide can Is optimism mechanism there on also to maybe comments culling that as much the you

Timothy Flanagan

in suspended back certainly, you the you're that I of If We recovery, appreciate market the or for back stairs. if I go you we time. a back, share of go while, talk hope the up question. and about we was said elevator Arun. right? down idled Thanks, take Yes. analogy walk a take that use doing would step the on well. And we when period you this did a Monterrey

progress day-to-day the on of front kind delivering made is I just a commercial value-added our which of entire CTS on basis, our in of as but customers, in U.S., team, with which lines the efforts in tremendous particular, the our team, each to services customers. the importantly, think team, we is our both the through mills

them their we've think It's I cost of providing and to service in deliver continue and asked results in our our you problems, engaging here kind be I think we through we customer. solutions a It's results front it, of So, their how do them, And And to right? good shown of overall total being with improving XXXX. XXXX. right? will done expectation that the as job ownership, of

asked at where that You journey. we're on

the doesn't supplier our continue order As far concerned, journey provide at And be and in the can quality customers. stop service. We'll every offering improve in book. continue point We key we to think as customer to I'm product preeminent that our time. we have to those that we any for supplier want to

have to where we a perspective. we will, you share be a don't if cap, market we So, on from think want

world of past. America but have production focused Europe, been the that in North absolutely markets footprint We're in the only for and in other you're think regionally, I not regions right. are and important profile there our heavily us because

nearly the of us as competitive today for have regions as they in aren't past. Some those been

of right? So, we're a the certain it onto to not of willing an and boat making a services on and us in incremental quarter they a provide. and not engaging because of necessarily electrode when value, We're next delivering we don't more. engaged for only We say, they're value either customers to dropping not the premium we're We're business a that the or pay need a business. be all tough on choices with customer or bidding call basis and can demonstrate value buyers are price dock aren't to oriented regular want you just they on

lot stepping So, success term. in away customers that, near that value that with. don't a having from value the of we're Customers that, we're

markets, those for I think markets, for in us. the and as the market more those recovers us competitive and pricing again, profitable becomes

to will the reengage have electrodes conditions hold think sell. as, the hold will and our opportunity market of an that because I and there's takes produce increase price improve. to we they want announced take that But overall again, quality

be of there's lot of fourth done And EAF coke where in term, needle pressing those progress headed we'll production work that's demand are, but the team's I as to and to quarter. So, for the through proud move the tailwinds still, well a we through XXXX. believe this longer keep again, broadly. where more the I around as fully as macro think business

signs overall recently thematic EV see that little front the of bit really and probably think will I around and support But autos coke there's the here will long maybe that or are out market positive just we term. back. and increase predicting the years look It medium demand. exponential predicting the we pace, few a was that still not quite But think adoptions on electrification at and uncertainty will be were we view as is, of I needle all a stuff. and been the

Arun Viswanathan

you considered a on the scenarios, Pamplona you're of, different kind be little but have, is Mexico, potentially just And you Do that U.S.? follow-up, I'm guess, are just Kale, when you can shipped a anything you then there so production I you make that maybe in sure the your shipping it that's if that Or you bit sending lot that. know And be of Pamplona from an regional from an don't considering along over and get American a does the materials Mexico other send the Monterrey, ship you And other from companies. to directly how facilities? regions and do Kale would lines, Monterrey that. possible. to of U.S. work? I company to you with just and to to I'm U.S.? would is could because else you, you an that as about of logistics kind the inputs I those Or talk converted some be export? instead here some to down Or electrode maybe American guess not exclusions and there can and trade then and familiar

Timothy Flanagan

Yes.

can of is kind is needle and coke and the Seadrift of mix We the market in coke, get in at time Seadrift starts transatlantic we and X supplant the raw well. facilities broadly, through get it electrodes across at South come right? East of about Where Middle really unique each Monterrey as some movement time Kale to end all as those Mexico product as but everything well Port to I materials electrodes about ultimately. America size, customer geographies shipped such right, think think you of as and globe our you in that serves as bulk the the production that we speaking, and between down some are needle But is balance serve of purchases again Pamplona of But the the well. because you U.S.; materials the again, Seadrift. other third-party into coke up operating there movement with that and side. raw produce produced the products and of nature the needle globally. But But a U.S. Lavaca facilities of generally globe, some the if our across them. think So, Europe the from facility that

have flexibility. we So,

sort we or But have We the planning that capabilities for have sorts permeations end speculate overlapping raw efficient take between at and that how not material spent probably perspective, operationally move team input or saying to customers, have give our and of to we're looks into there disincentives looked but with. that, like keep capabilities and the that flexibility modify size But pivot delivery to we only like supply is it feel to to to respond are us scenario and but going tariff other could in than again, chain different facilities material supply of countless as on from and Jeremy our for have market. we've all market operating that extent diameter designed efficient, and that these today, place to chain that premature Obviously, of it's one another what a other we'd from ultimately hours we the for efficient of flexibility. way. optimized terms

Arun Viswanathan

just demand? have coke? pricing support needle when increase. is increases is driven you an here, by supply/demand? obviously, by then going it it to announced about you further you And What, Great. And lastly, for if you up industry? Okay. further about should driven think driven do steel recovery be by electrode Or kind for forward? price where rates for on supply/demand, And look are your in the as of kind are you Or supply/demand tick utilization we continue potential to of optimistic in the

Timothy Flanagan

the the calls for there growth growth talked Right view think of is we're that point, now, chains forward-looking talked of a start or demand feverishly all which low that that taking, the the the from their 'XX here here going working positive all the to are synthetic up including we we're the market, organizing is, to the now, are years, and needle recognize some actions, available to graphite continue that about that facility versus XXXX, that market 'XX, think there talking at recovers. in on for demand allow producers talking we've think the West a steps but others when that more certainly And need and a quickly coming move if imbalance. for of with start much that it's that focused should it's the about we're pretty some material, material we've businesses tighten supply downward don't ready enough go steel their size we're but about going now say market. there is to the some number will start relatively why you because coke. was back I that supply and right than right? mean on which I will anode we've electrodes those that is Yes. price balanced see, would they're about battery and you relatively things up demand in along West. been needle coke supply a There's of from our the There tighten the how previous otherwise I few steel get think do market. coke don't needle it supply/demand and seen. will We term, are going increase, therefore, see that to they challenges again, a we development that in we've reductions prices to to are take respective tightness optimistic in right? that announced to to I to and otherwise albeit do capacity still long continue in in side hold And

So we of certainly swing influence catalysts could be the it trade and trade. the to rest that the you we good. needed China, get amount our relatively now, it those are allow any profitability is feel recover if where to meager right be. in huge market long otherwise think and reductions, quicker And prices of business export kind catalysts prices Chinese term, of further of in global capacity player material sort around want the announcements the to they about with that to Short-term, push the electrode at

and rebalance move uptick that a can as it's be supply a needle from So, march bit there's it. coke a to little short-term slower the and otherwise. going of few demand catalysts progressive Otherwise, get you

Operator

from Hacking last line comes Your question Inc. of the Citigroup from Alexander

Alexander Hacking

XX% firmly is committed, The part priced? is contingent? have all it you Or part firm and that that

Timothy Flanagan

Yes.

comments, to So volume. is on both going my committed back and it earlier price

Alexander Hacking

color willing not Okay. this, to you're then the I'm any pricing if disclose trend? but around sure And

Timothy Flanagan

Yes.

quarter Middle challenges. $X,XXX plays at certainly, on a more drag and than into the an think quarters I to But we've our not the influence of go or you of fourth $X,XXX East think we're a Mix specific little at, of put practice consecutive some the past or our seen and region, just to pricing more that. North guidance around pricing. to the American some is certainly, back ton. going about Europe where regions that comments versus stick I if providing market tons we down. If we But previous X and that ended will price decline,

seen what some market domestic looks least like. we've their right? influences prices, think stabilization that I export So at in Chinese

that's otherwise is to going really overweight committed it the forward. U.S. everybody if or West out material the to in certainly point the down one you XX% comes thing Probably volume, think else right, competes to about the how that's So, remember, for U.S. important

they on 'XX they stuff. basis in commit an were than versus lower Prices are where and to because in QX QX Just tend annual of quarterly contracting of 'XX.

good U.S., able are markets the us, certain ASP terms help progress have away And the at from bit aren't contract from a profitable committed we you're see drag of and to those which we where our So, go to stepped going which that for will little back tons. down as volume but in levels to again, I'll overall well. the of otherwise,

Alexander Hacking

Okay. should for one XXXX? for I And final What be may. question, housekeeping modeling if we just interest then expense

Jeremy Halford

$XXX that still basis million, and So, have first outstanding have commitment debt for of about fixed a know, as to have you we'll we'll fee $XXX XXX our XXXX, commitment draw outstanding. then the We'll million charge. points of draw

for where is around we XX% 'XX. should expense interest have right So

Operator

for hand question-and-answer will our I to concludes over remarks. Mr. closing back session. This Flanagan Timothy the call now

Timothy Flanagan

speaking quarter. Thanks, interest with for a day. Have great your and call we Constantine. forward you to I'd like to next thank GrafTech, everyone today in again look on the

Operator

call. conference very much today's concludes you participation. This Thank your for

now may You disconnect.

GrafTech International (EAF) 7 Feb 252024 Q4 Earnings call transcript